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How persistent is unemployment in major Latin American economies?

Author

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  • Pedro Clavijo-Cortes

    (University of Utah)

Abstract

This document investigates the degree of unemployment persistence in four major Latin American economies by using Bayesian methods to estimate a generalized stochastic unit root. Among the main results, it is found that the four countries in the sample exhibit a high degree of unemployment persistence. Colombia and Mexico show some periods of explosiveness associated with periods of crisis. Chile and Bazil display the most moderate cases. The study exploits two different channels to explain the unemployment persistence connected with institutional changes and the duality that characterizes developing countries.

Suggested Citation

  • Pedro Clavijo-Cortes, 2021. "How persistent is unemployment in major Latin American economies?," Economics Bulletin, AccessEcon, vol. 41(2), pages 342-360.
  • Handle: RePEc:ebl:ecbull:eb-20-00415
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2021/Volume41/EB-21-V41-I2-P31.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    stochastic unit root; hysteresis; unemployment; Bayesian estimation;
    All these keywords.

    JEL classification:

    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies

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